Surging bonds yields have pressured equity markets in recent weeks. But some stocks may offer a method for investors to weather the rising rate environment and find some safety. Treasury yields have marched higher in recent weeks, with the yield on both the 2-year and 10-year U.S. Treasury notes hitting levels not seen in more than 15 years. As rates hover around those highs, risk assets have sold off, with the S & P 500 and tech-heavy Nasdaq Composite on pace for September losses of 2.4% and 3.4%, respectively. US10Y 1M mountain 10-year U.S. Treasury yield over the last month Stoking yields higher was the Federal Reserve, which indicated last week that another hike may be on the horizon, despite refraining from upping rates at its September policy meeting. At the same time, commentary suggested that rates may stay elevated for longer than anticipated. Amid this backdrop, CNBC Pro used its stock screener tool to search for potential safe-haven companies to ride out the volatility. We searched for names offering a solid and safe dividend yield that met the following criteria: Dividend yield exceeding 3% but below 8% Debt-to-equity ratio below 60% Stock is in the green for the year so generating price performance too Loved by analysts with a consensus buy rating These are the five stocks that made the cut: Diamondback Energy offers the largest dividend yield of the group at 4.5%. Year to date, the stock’s seen a solid run, gaining more than 11%. For the month, shares are up about 0.4% and have bucked the broader September downtrend, catching a bid from the recent jump in oil prices. The company’s debt-to-equity ratio sits at 42%. Energy companies Exxon Mobil and ConocoPhillips also made the list, offering dividend yield of 3.1% and 3.8%, respectively. Exxon’s benefitted from September’s uptick in oil prices, with shares up 4%. Yearly gains for both stocks, however, trail Diamondback’s performance. Exxon also offers the lowest debt-to-equity ratio of the group at roughly 21%. FANG YTD mountain Diamondback shares since the start of 2023 Real estate company Prologis and medical device maker Medtronic also met the criteria.
